The City's Uneasiness: Upset by Big Failures: Rush Tactics in Parliament: Mounting Expenditure Frou Our Connesroxpest London, Dec. 19.
Ail is not well with the City at the present time, and there is a good deal of not unnatural uneasiess as to the future, In the first place, the revelations in the Hetry case have caused an appallingly bad impression. Sir Gilbert Garnsey, the accountant, this week announced Jat the Guildhall that the total of deficiency would be more than £13,- 500,000, which he made up as follows:—The gross liabilities of six! companies are £29,500,000, not including the issued share capital of the case now, and people are flocking to the galleries in the House to hear the debates. Parliament is exceptionally busy; it will rise next 'Tuesday only. until January 21, and the public are rather perturbed at. the rushing tactics adopted for very' important. legislation. This last week has been a typical example of these tactics. The Government has r.shed through the new clause to the Unomployment Insurance Bill, abolishing the "genuinely geek work" clause, and it passed the third reading by 273 votes to 199, by which it will be seen that Conseryties and claims are approximately $10,000,000; abilities to banks, brokers, financial houses, and others are approximately 19,500,000, There will certainly be nothing for creditors. The following figures were given of the remuneration from 1925 onwards of the defendants:—Hatry, £42,526; Daniels, £23,545; Tabor (from Oct. 1926 20. September 1920), £5,065; Dixon' (from 1925), £11,565.
Sir Gilbert also declared that on January 23 last there was a payment of £6,450 to Mrs. G. L. Bevan and of £25,000 on February 5 to Mr.
Bevan, Harry was stated to have explained that these payments represented loans to Mr. Bevan. Mr. Gerard Leo Bevan was formerly PSs. chairman of the City Equitable Fire Insurance Company, Ltd., which, with associated companies, failed for $2,000,000 in 1922. All' the defendants in this case have admitted their guilt, but contend that they made nothing out of it themselves. This is the one point on which they /seem to want to lay stress.
To-day we had the announcement that still another City sensation of first magnitude has arisen, This time it is over the affairs of the Inveresk Paper Company and its big group of allied companies: built up by Mr. Wiliam Harrison. Inveresk shares have slumped heavily during the past few weeks. Mr. William Harrison, who was formerly solicitor of Bradford, came into public notice in 1926, when he arranged "0 purchase for about $2,000,000 "a group of illustrated weekly and trade periodicals owned by Sir John Ellerman. These in-chided the "Illustrated London News," the "Sketch," the "Sphere," the "Tatler," "Eve" and the "Drapers Record." The following year' he acquired a controlling interest in the "Lancashire Daily Post" and a. number of other newspapers; while in July Vast year he purchased, on behalf of the Inveresk group, the control of the Daily Chronicle Invest mn! ment Corporation, which, in turns, controls United Newspapers, Ltd., proprietors of the "Daily Chronicle,' the "Sunday News," the "Edinburg! Evening News," the "Yorkshire Evening, News," the "Doncaster Gazette," and other papers. Apparently it has been found necessary to pass the preference dividends of Invoresk shares; Mr. William Harrison has resigned his chairmanship, though he remains a director, while a committee of investigation, headed by Viscount St. Davids, has been appointed.
'These trust companies seem to be cotting over-capitalized. Very soon' the public will get more and more dubious about new issues, partifeatarly about big concerns. statement just issued by the Mid-Jand Bank points out that down to November, 1929, the total of new capital issues in the United King-dem only amounted to 248,466,082, as against £337,822, 647 in the corresponding period last year. This sounds @ warning note. Meantime one talks to City people generally, Jone finds there is very bitter ent ism regarding some of the financial methods now being adopted by a number of organizations.
The Coal Mines Bill It is unusual at this time of year barely a week to Christmas—for polities to occupy public attention fo any serious extent, but this is numbers for political work, "Mr. Travers said the problem would receive the close attention of the Council of the Association. He referred. eulogistically to the work of Sir Arthur Froom on the Indian Central Committee which was not only on behalf of the community but in the interest of the whole of! ative Members were still apathetic. Tha. most important work of the Government. this week, however, been the introduction of the Coal Mines Dill, which has. raised storm of eriticiam and conjecture.
Many people predict that it wil result in the defeat of the Government, but, owing to the uncertainty of Liberal policy in regard to. the Conservative motion of rejection, this isnot seriously contemplated by people who are in touch with Government circles. In any case the division on the Second Reading to-night will be followed with more than ordinary interest, though at the time of writing the indications fare that the Second Reading will At its introduction on Tuesday, the main object of Mr. Graham was, to conciliate the Liberals, Mr.
Graham was very masterful and the prreuasiveness of his speech wa: made possible by a thorough know. ledge of a subject which has been his almost daily concern for five months. Not only does the Liberal Party hold a middle and tion in the House, but it has a programme of mining legislation of, which, in conceivable circumstances, 'a good dea} of propaganda use might" be made, now and in the future, Mr. Graham skilfully: evaded the weaknesses of the Bill and Sir P. Cunliff Lister and Sir Herbert Samuel exposed them. It! is felt, however, that if the Govern. ment are more anxious for a good Bil than for a Party Bill, if they are prepared to seck the assistance of the whole House in the moulding measure with immense possi-of good Or ill, not for one industry alone but for all, then the discussions will assume a new character. The revival of the coal industry is an object that transcends mere party "interests. The main promise of the Bill was, of course, the election promise made by the Socialists to reduce the - miners' hours and to provide the money to pay for this expensive concession it is proposed to introduce a system of marketing and limitation of output to increase the funds at the disposal of the industry. As this virtually means that prices will have to be raised to everybody who consumes coal, a nuniber of in efficient pits will be kept going whether or not it is econontic to do 80.
Text read from the printed page and cleaned; old type leaves the occasional error.